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> Real interest rate is negative, close to -5% Can you elaborate on that? Are you saying corps are getting paid to take money on interest?
by mandeepj 4y ago
> Real interest rate is negative, close to -5%
Can you elaborate on that? Are you saying corps are getting paid to take money on interest?
- im3w1l 4y ago"real" in this context means inflation adjusted. Inflation decreases the value of money, but also the size of debts. Inflation is currently shrinking debts faster than the interest payments build it up. But it depends on what interest rate you have, high risk - high rate debt does not work like this.
- treeman79 4y agoDebt only decreases if your income is going up as well. Otherwise it just stinks.
- slaw 4y agohttps://en.wikipedia.org/wiki/Real_interest_rate https://en.wikipedia.org/wiki/Real_interest_rate